European Investment Bank grants EUR 718 million of funding to Turkey

The European Investment Bank (EIB) has granted EUR 718 million of funding for rail transport, electricity distribution, energy efficiency and renewable energy projects in Turkey.

The bank said in a statement that the EUR 293 million loan to the Turkish State Railways (TCDD) will support Turkey’s main transportation corridor between Ankara and Istanbul. The additional funding brings the total support for the project to EUR 850 million.

“The EUR 125 million to the Turkish Electricity Distribution Corporation (TEDAS) is for the expansion and upgrading of the existing power grids in order to improve the efficiency and reliability of electricity distribution”, it said.

The bank said the EUR 300 million granted to the Turkish Industrial Development Bank (TSKB) and to the Turkish Development Bank (TKB) was in the form of a framework loan in favor of small and medium-sized investments in renewable energy, energy efficiency and pollution abatement. “The Framework Loan is to support investments in Turkey that generate significant environmental benefits, fully in line with EU priorities. Both TSKB and TKB are long-standing partner banks of EIB in Turkey”, it stated.

On this occasion, EIB Vice-President Matthias Kollatz-Ahnen said, “efficient infrastructure in transportation, energy and environment is the key to the development and prosperity of Turkey and its accession to the European Union.”

“As the European Union’s bank, we are keen to reconfirm our broad, swift and strong support for Turkey, which remains the largest recipient country of EIB financing outside the EU.